Annual Leave in Malaysia: 8 Days or 14 Days? Know Your Rights

Here’s What You Need to Know 📝

In Malaysia, employees’ annual leave entitlements are primarily governed by the Employment Act 1955, which applies to workers in Peninsular Malaysia (West Malaysia) and Labuan particularly those earning below a specified monthly threshold (currently RM4,000) or engaged in manual labor. However, many employers choose to extend similar benefits to all employees, regardless of salary level.

The number of paid annual leave days is determined by the employee’s length of continuous service with the same employer:

• Less than 2 years of service: Minimum of 8 days per year
• 2 to less than 5 years of service: Minimum of 12 days per year
• 5 years or more of service: Minimum of 16 days per year

1️⃣ Prorated Leave

For part-time employees or those who join partway through the year, annual leave is usually prorated based on how many months they’ve worked.

For example, a full-time employee with less than 2 years of service is entitled to 8 days of annual leave. If they’ve worked only 6 months, they would get: (8 ÷ 12) × 6 = 4 days.

2️⃣ Public Holidays

Annual leave is separate from Malaysia’s public holidays. Employees are entitled to 11 paid gazetted public holidays per year, whereby five are fixed (National Day, Birthday of the Yang di-Pertuan Agong, Birthday of the Ruler / Yang di-Pertua Negeri / Federal Territory Day, Labour Day, and Malaysia Day) and the remaining six depends on the state and employer. So in total, your paid time off will usually be more than just your annual leave.

3️⃣ Leave Carry-Forward

The Employment Act doesn’t require employers to carry forward unused annual leave to the next year. This depends on the company’s policy. Some companies allow carry-forward, while others follow a “use-it-or-lose-it” approach.

4️⃣ Private Sector Practices

Many private companies especially multinationals and those in competitive industries like tech or finance offer more generous leave packages to attract talent. New employees might get 15 to 20 days of annual leave, well above the legal minimum.

5️⃣ Changes in Leave Coverage

With the Employment (Amendment of First Schedule) Act 2022, effective 1 January 2023, the Act now covers all employees, regardless of their salary.

However, certain benefits (like overtime or public holiday pay) still apply only to those earning RM4,000 or less, or those doing manual work. This change doesn’t affect annual leave entitlements, but it does expand legal protection to a wider group of workers.

How Is Annual Leave Calculated for Part-Time Employees?

Part-time employees are also entitled to annual leave, adjusted based on their working hours compared to full-time staff.

For example, if full-time employees work 5 days a week (totaling 48 hours) and receive 8 days of annual leave, a part-time employee working 2 days a week (40% of full-time hours) would get:
8 × 40% = 3.2 days (usually rounded to 3 days, or according to company policy).

If a part-time employee has worked less than 12 months, their leave is further prorated.

For instance, if a part-timer is entitled to 3 days of leave but has only worked for 2 months, they would receive:
(3 ÷ 12) × 2 = 0.5 days (subject to rounding rules).

Can Employees with Less Than 3 Months of Service Get Leave?

Annual leave is legally earned on a yearly basis, and the Employment Act doesn’t explicitly guarantee annual leave for employees with less than one year of service.
However, in practice, employees who have worked at least one month are usually entitled to prorated leave upon resignation.
For example:

• 2 months of service:
  8 ÷ 12 × 2 = 1.338 ÷ 12 × 2 = 1.338 ÷ 12 × 2 = 1.33 days (usually rounded to 1 or 2 days)
• Less than 1 month:
  No statutory entitlement, though some employers may offer leave as a goodwill gesture.

If your company policy or employment contract allows for prorated leave even within the first 3 months then it should be honored as stated.

8 Days or 14 Days?

The big question: Do you get 8 days or 14 days of annual leave?
The answer depends on your length of service and your company’s policy.

• Legal minimum under the Employment Act:
  – Less than 2 years: 8 days
  – 2 to 5 years: 12 days
  – More than 5 years: 16 days
• In practice:
  Many companies especially in the private sector offer 14 days or more to stay competitive and attract talent.

For example, a new hire at a tech company might start with 15 days, while someone in a traditional industry with 5+ years could receive 16 or more days, especially if unused leave can be carried forward.

In summary, Malaysia’s annual leave structure sets a legal baseline, but many companies go above and beyond. For most employees, 8 days is just the starting point with time, experience or a generous policy, 14 days or more is totally within reach.

So, how many days of annual leave does your company offer?
Drop your thoughts or questions below ↓ We’d love to hear from you!

Before you can offer benefits like 8 or even 14 days of annual leave, you’ll need to get your business properly set up by starting with an Sdn Bhd.

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